MIRA INFORM REPORT

 

 

Report No. :

329968

Report Date :

30.06.2015

 

IDENTIFICATION DETAILS

 

Name :

TOHO CO LTD

 

 

Registered Office :

5-9 Koyocho-Nishi Higashinadaku Kobe City Hyogo-Pref 658-0033

 

 

Country :

Japan

 

 

Financials (as on) :

31.01.2015

 

 

Date of Incorporation :

October 1947

 

 

Com. Reg. No.:

1400-01-002071

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Mfg of business-use foods

 

 

No. of Employees :

2,157

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

Yen 4,170.6 Million

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

D

 

 

JAPAN ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop an advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil fuels. A small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. For three decades, overall real economic growth had been impressive - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the aftereffects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession four times since 2008. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake and the ensuing tsunami in March of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2014 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

Source : CIA

 

Company name

 

TOHO CO LTD

 

 

REGD NAME 

 

KK Toho

 

 

MAIN OFFICE

 

5-9 Koyocho-Nishi Higashinadaku Kobe City Hyogo-Pref 658-0033 JAPAN

Tel: 078-845-2400     Fax: 078-845-2423     -

 

URL:                 http://www.to-ho.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mfg of business-use foods

 

 

BRANCHES   

 

Tokyo

 

 

FACTORIES  

 

(subsidiaries)

 

 

CHIEF EXEC 

 

YUICHI UENO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 208,998 M

PAYMENTSREGULAR   CAPITAL           Yen 5,344 M

TREND UP                    WORTH            Yen 23747 M

STARTED         1947                 EMPLOYES      2,157

 

 

COMMENT    

 

MFR OF BUSINESS-USE FOODS

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 4,170.6 MILLION, 30 DAYS NORMAL TERMS

 

                        Unit: In Million Yen

Forecast figures for the 31/01/2016 fiscal term.

 

 

HIGHLIGHTS

 

This is the largest business-use foods manufacturer and wholesaler.  Operates membership food stores named A-Price selling food ingredients to hotels, department stores, restaurants, coffee houses, etc.  Also manages general food supermarkets.  Placing more emphasis on expanding sales network in Kanto area including Tokyo.

 

 

FINANCIAL INFORMATION

 

The sales volume for Jan/2015 fiscal term amounted to Yen 208,998 million, a 2.3% up from Yen 204,394 million in the previous term.  The recurring profit was posted at Yen 2,551 million and the net profit at Yen 1,000 million, respectively, compared with Yen 2,192 million recurring profit and Yen 516 million net profit, respectively, a year ago.

 

(Feb/Apr/2015 results): Sales Yen 52,055 million (up 3.5%), operating profit Yen 593 million (up 0.1%), recurring profit Yen 564 million (down 0.9%), net profit Yen 440 million (up 84.8%).  (% as compared with the corresponding period a year ago).

 

            For the current term ending Jan 2016 the recurring profit is projected at Yen 2,700 million and the net profit at Yen 1,100 million, respectively, on a 2.9% rise in turnover, to Yen 215,000 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 4,170.6 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　                   Oct 1947

Regd No.:                                 1400-01-002071 (Kobe-Higashinadaku)

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              139,754,000 shares

Issued:                         55,060,834 shares

Sum:                            Yen 5,344 million

 

Major shareholders (%): Machidori Shoji (8.0), Employees’ S/Holding Assn (6.6), Kokubu & Co Ltd (5.0), Dai-ichi Life Ins (3.9), Fujisaki Kosan (3.9), Nishi-Nippon City Bank (2.4), Nippon Life Ins (1.7), Bank of Fukuoka (1.4), SMBC (1.1), Fuji Fire & Marine Ins (1.1); foreign owners (1.3)

 

No. of shareholders: 8,092

 

Listed on the S/Exchange (s) of: Tokyo, Fukuoka

 

Managements: Yuichi Ueno, pres; Toshiaki Sato, dir; Mikio Yamanaka, dir; Kazuhito Okumura, dir; higemasa Takahashi, dir; Shigeru Maenaka, dir; Hiroshi Izumi, dir; hin’ichi Omori, dir

 

Nothing detrimental is known as to the commercial morality of executives.

 

Related companies: Toho Food Service, Toho Cash & Carry, Toho Store, other.

 

 

OPERATION

           

Activities: Manufactures business-use foods; distributor business (66%), cash & carry(20%), food supermarket business (12%), others (1%)

           

Clients: [Mfrs, wholesalers] Toho Farm, Toho Store, Toho Food Service, TSK, Asbit Co,             other

            No. of accounts: 500

            Domestic areas of activities: Centered in the greater-Osaka

 

Payment record: Regular

 

 

Location: Business area in Kobe.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

                        Nishi-Nippon City Bank (Fukuoka-Ryutsu Center)

                        Higo Bank (H/O)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/01/2015

31/01/2014

INCOME STATEMENT

　

　

  Annual Sales

　

208,998

204,394

　

  Cost of Sales

169,883

165,844

　

      GROSS PROFIT

39,114

38,550

　

  Selling & Adm Costs

36,487

36,253

　

      OPERATING PROFIT

2,627

2,297

　

  Non-Operating P/L

-76

-105

　

      RECURRING PROFIT

2,551

2,192

　

      NET PROFIT

1,000

516

BALANCE SHEET

　

　

  Cash

　

8,540

7,897

　

  Receivables

16,892

14,970

　

  Inventory

10,012

9,495

　

  Securities, Marketable

　

　

　

  Other Current Assets

3,179

3,015

　

      TOTAL CURRENT ASSETS

38,623

35,377

　

  Property & Equipment

27,977

28,293

　

  Intangibles

3,220

3,021

　

  Investments, Other Fixed Assets

10,788

9,306

　

      TOTAL ASSETS

80,608

75,997

　

  Payables

25,397

23,635

　

  Short-Term Bank Loans

8,118

9,067

　

　

　

　

　

  Other Current Liabs

5,336

4,191

　

      TOTAL CURRENT LIABS

38,851

36,893

　

  Debentures

　

　

　

  Long-Term Bank Loans

15,176

14,301

　

  Reserve for Retirement Allw

290

284

　

  Other Debts

　

2,544

2,255

　

      TOTAL LIABILITIES

56,861

53,733

　

      MINORITY INTERESTS

　

　

Common stock

5,344

5,344

　

Additional paid-in capital

5,041

5,041

　

Retained earnings

12,229

11,774

　

Evaluation p/l on investments/securities

364

198

　

Others

940

77

　

Treasury stock, at cost

(171)

(170)

　

      TOTAL S/HOLDERS` EQUITY

23,747

22,264

　

      TOTAL EQUITIES

80,608

75,997

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/01/2015

31/01/2014

　

Cash Flows from Operating Activities

　

3,440

2,857

　

Cash Flows from Investment Activities

-968

-793

　

Cash Flows from Financing Activities

-1,669

-3,220

　

Cash, Bank Deposits at the Term End

　

8,275

7,469

ANALYTICAL RATIOS            Terms ending:

31/01/2015

31/01/2014

　

Net Worth (S/Holders' Equity)

23,747

22,264

　

Current Ratio (%)

99.41

95.89

　

Net Worth Ratio (%)

29.46

29.30

　

Recurring Profit Ratio (%)

1.22

1.07

　

Net Profit Ratio (%)

0.48

0.25

　

　

Return On Equity (%)

4.21

2.32

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 63.91

UK Pound

1

Rs. 100.40

Euro

1

Rs. 70.41

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

DPT

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

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